A standard rule for lenders is that your monthly housing payment should not take up more than 28 percent of your income. However, home affordability is about more than just how much you can borrow. Readmore THE MORTGAGE PROCESS Mortgage pre-approval vs. prequalification – what’s the differe...
To become a first-time homebuyer, you’ll need your finances to be in good shape. Most people need to get a mortgage to buy their first house. Before lenders will take the risk of offering you your first mortgage, they’ll generally want to see evidence that you can repay the debt, ...
Another key consideration for lenders is your DTI ratio, or the percentage of your gross monthly income that goes toward paying off your monthly debts. Aim for less than 43%, but don't worry if you're above that threshold as a first-time homebuyer. ...
Through its First Time Homebuyer Loan program and related down payment assistance, RIHousing offers potential 100% financing. You can get these loans from RIHousing directly or from one of its participating lenders. To get a First-Time Homebuyer Loan, you’ll need to take an online home buye...
First-Time Homebuyer Hopes Soar as Lenders Scramble to Offer Deals
Financial experts recommend having 3 to 6 months of living expenses in savings before buying a home. However, how much debt you have, also known as your debt-to-income ratio, is a much more important number for lenders. It’s highly recommended you know what your credit score is before ...
Conventional mortgages are the most common type of home loan. The government does not guarantee them, so private lenders, like banks and credit unions, typically offer these loans. Some conventional loans may require only a 3% down payment for first-time home buyers. Traditional loans’ appeal ...
The VA Home Loan Program The Department of Veterans Affairs (VA) managesthis program, which makes home loans available to veterans of the U.S. military. These loans are issued by private lenders, such as banks and mortgage companies, but the VA guarantees a portion of the loan so you can...
First-Time Homebuyer Requirements To be approved for a mortgage, you'll need to meet a number of requirements, which can vary depending on the type of loan you're applying for and your particular lender. Lenders will generally require proof of income sufficient to make the monthly mortgage pa...
There’s not necessarily one right mortgage lender for everyone, but there are some that really stand out as among the best. Each of the lenders on our list is a great choice for a different type of first-time home buyer. Whether you’re looking for excellent customer service or a fast ...